Human Resource Management In A Global Economy

Introduction

Key issues identified

Dealing with the issues in the case

Key recommendation

Conclusion

Reference

Introduction to The Search for Global Competence

Human Resource Management is vital for providing adequate selection, training, and developing a good relationship among employees (Vance, 2006). This report aims to highlight the key issue relating to human resource practice at No Name Aircraft. The aircraft has operates out of Australia and has a subsidiary in Vietnam, and Singapore, and China.

The case study highlights the human resource issues related to international human resource management, training and development, diversity management, cultural sensitivity, and communication. The CEO has to implement change in business practice as the company takeover is imminent. As an HR consultant, it is imperative to identify an optimized solution based on cultural and existing organization practices for resolving the HRM issue. An implementation plan is drawn to structure changes as observed as HRM consultant. This report highlights recommendations for the development of an integrated system, adapting to workforce planning to turnaround the organization's current conditions. Measuring cultural competency with international and local market condition and acknowledgment will reduce bias among would be highlighted with IHRM practice.

Key Issues Identified

As an HRM consultant, the key issues identified are the lack of effective group work between the subsidiary and the host country. The lack of communication between the company has impacted business profitability. The home country is Australia and parts are produced in China, Vietnam, and Singapore. The key challenge identified in staff management across hierarchy shows a lack of integration of staff management with communication and decision making impacting the subsidiary's function. No Name airlift is unable to integrate its team and the negative culture has impacted the organization. The organization did not have an effective learning and development system. This has led to a lack of key skills development among the onboarded staff. The learning program was limited to self-paced courses. Employee's interwork communication lacked team spirit and cohesion due to fear of job position. Staff earmarked for promotion were not recognized for the same, this led to poor retention of staff. Organization lacked effective workforce planning. The lack of cultural sensitivity was reflected with no structured consideration between the company's cultural differences concerning local staff and expatriates. Disability exclusion can lead to legal consequences for the company reflecting poorly on the diverse practice of the organization. Lack of training and development in the organization was identified as the employee have to refer to online resources. The employee did not have formal training and found it difficult to custom to the new workplace environment. Lack of training exerted pressure on the onboarded staff. The centralized decision making resulted in conflicting performance outcomes within the subsidiaries. Another problem identified in the organization was performance appraisal and the organization does not have feedback avenues for expatriate training and they were not included in the process. The local and economic considerations were not taken into account while reviewing performance. The lack of diversity may lead to legal action against the firm further reputational damage to the entity.

Dealing with The Issues in The Case

As a human resource consultant, the issues can be dealt with by addressing change in organizational culture. The need for transparency reflects through a lack of interpersonal communication identified in No Name Aircraft. Creating diversity management with the enforcement of the policy by penalizing heavily on defaulter will build a highly professional environment. To reduce barriers identified in No Name Aircraft development of the global knowledge system, working in distributed teams will help in transmission and diffuse knowledge between partners.

Hofstede a cross-culture index compares the culture based on power distance, individualism, masculinity, uncertainty avoidance, long-term orientation, and indulgence (Hofstede insights, 2020. The understanding of the cultural dimension is vital for addressing organization plans. Power distance reflects the extent to which less power full members within-the country except that power is distributed unequally. In Australia, the score is low on a dimension where hierarchy is consent and communication is participative (Hofstede insights, 2020). Comparing to subsidiaries China experience power abuse. Organization communication have to be realigned for increasing mentor-mentee program and removal of hierarchal system for feedback. Individualism reflects the society only looks for themselves whereas collective reflects in group and exchange loyalty. Australia is highly individualistic with the employee are expected to be self-reliant. Masculinity reflects a high score and indicates competition, achievement, and success. A low score indicates dominant views on the quality of life. Australia is majorly masculine and focuses on striving for the best. Uncertainty Avoidance relates to the extent to which members of society feel threatened by unknown situations. Australia has an intermediate score. Long term orientation reflects how society maintained links with its tradition. Australia has a normative culture and reflects traditions. Indulgence reflects the people control their desire and impulse. Australia is indulgent and reflects a positive attitude. The cultural influence shows personal career development and evaluation system has to reconfigured based on team performance and group achievement. Developing inter-cultural dimensions based on key measures will help No Name to undertake a relative change in its subsidiaries units. The normative institutional pressure is closely related to historical perspectives based on country dynamics and local practice in Asian and western counterparts (Daniel, 2018). The adaptive approach size and structure with Vietnam as a small country size and China as highly government-controlled and strict regulations have a high technological interface. China is a developed economy hence the HRM practice can be modified according to local institutions. The Chinese cultural heritage reflects collective cultural orientation in China. HRM practice can be modified by developing a performance management process and learning programs for knowledge workers. Transitioning in countries China, Vietnam from collectivism to individualism requires developing promotion and pay based on individual contributions. The average monthly earnings show employment to the population as highest in Vietnam with more choice with gender spread for women labor services (OCED, 2011). The labor market availability and technological advancement will help reduce costs due to the high arability of labor.

The development of KPI aligned to clearly defined goals will enable employee performance aligned with economic factors and business objectives (Elmah, 2018). Considering local factors by developing a hybrid approach based on Asian and western system labor force participation for strict adherence to labor practice. Chanelising feedback across the organization will improve employee engagement and ownership and control among the employees. Measuring cultural competency embracing religious belief cultural practice and acknowledgment will reduce bias among the employees with the enforcement of the policy (Cascio, 2016). Ensuring that the issue is not repeated in changing working conditions. This can be done by reducing sub conscious bias and improving problem skill approach.

Institutional influence and union are standardized across all subsidiaries for employee welfare. These include the set of formal rules established by the organization. The organization lacks transparency. Reviewing organization policies for subsidiaries will formalize the structure and help in providing the benefit of the review system, working conditions, and health and safety provisions. The normative influence shows the socio-cultural influence of the powerful forces of the organization (Lauring, 2011). IHRM practice should focus on developing a healthy relationship between resources for a better perception of the members. The cultural index reflected differences in social perception.

The socioeconomic influence shows the factors related to labor market conditions and workplace policies. The labor market has a direct influence on workforce demand and supply. Talent based hiring to been followed in subsidiary reflects ignorance of OECD guidelines. OECD framework supports local capacity building and promoting awareness and compliance by workers and refrain from discriminatory conduct (OCED, 2011).

Following top-down communication anti-discrimination law and policy related to equality and labor protection to ensure the organization can take swift action through redrafting the same. Key HRM issues indicate impersonal control for monitoring of financial outputs and centralized procedure by No Name Aircraft resulting in miscommunication and instance of surplus part production. Granting autonomy of operations will help to manage business operations. Subsidiaries of MNC reflect one part of the inter-organizational network but not all are important relation to the whole organization. Developing an implementation plan will ensure cultural diversity. The plan will be measured through employee feedback and internal control on staff retention to 75% achievement monthly. Senior employee interviews will enable to development of a strategic plan with human resource management. The company can adapt change in structure to the transnational matrix approach. The organization can balance appropriate centralization and localization. No name on cultural practice can make local decisions while developing performance structures and through a centralized process for employee job satisfaction and managing structure organization. The challenges with Multinational enterprises(MNEs) relates to adapting to the diversity of institution across countries and region (Elnaga, 2013). Developing strict measures for no tolerance policy to curb incentive practice and discrimination. Developing workforce planning and career development through lateral programs will diverse workforce management and employee job satisfaction. Diversity can be encouraged by cultural sensitivity programs to foster work culture relationships. The binding organizations will be required to adopt a unilateral program for communication through intranet, face-to-face interaction (Zhang,2015). Subsidiaries can use videoconferencing to create decision making across the patent to subsidiary Developing a reward structure linked to PMS will increase employee motivation. For promoting diversity program through developing the realignment of the hiring process encouraging equal opportunity to all. Enabling peer review and 360-degree feedback will improve the general program at the organization. Team development and cross-team function can be developed through 5 stage team development. This will help in reducing interdepartmental communication and resolving conflicts. Facilitation of communication on monitoring actions will encourage team dynamics in the organization in team cohesion. Employee upskilling and training will assist in cultural development. A systematic approach to training and addressing the principles designed for training based on sensitivity to possible cultural difference with autonomy, and using the opportunity of interaction. Developing need assessment, training objective demonstrating appropriate behavior. Designing global performance management on upstream and downstream considerations. Considering local factors as external conditions by customizing design performance management and appraisal system as nonverbal communication. Developing a personal relationship will work well in subsidiaries where as in Australiaself-appraisal will work with individualistic culture where as collectivistic culture has a strong emphasis on loyalty. Developing channels where the victim can report incidents for cultural diversity discrimination issues. For the diapered team it is vital to manage integration through virtual tools for convenience and foster trust among employees.

Implementation Plan

  • Phase 1- Planning and organizing- Strategic planning will enable HRM practice and will ensure policies set up. The developing plan will help in mitigating HRM issues. 
  • Phase 2- Defining targets and assigning roles- MNE will be allocated with individual accountability on learning and development.
  • Phase 3- Managing workforce- Employee resistance could harm the organization in managing workforce. No Name Aircraft could resist the changes. Developing communication through subsidiaries and parent organization by mentoring session and face to face communication will benefit the organization.
  • Phase 4- Developing team cohesion- Employee engagement through developing need assessment and using the mentor program will encourage communication matrix across the organization (Feton-OCreevy, 2008)
  • Phase5- Applying review system- Creating a learning platform and 360-degree feedback will facilitate cross-cultural communication and employee development.
  • Phase 6- Monitoring the process - This last stage includes measuring the effectiveness of the said process. The plan will be measured through employee feedback based on survey and internal control on staff retention on achievement monthly. Senior employee interview will enable to develop of a strategic plan with human resource management

Key Recommendation on 

The key solution will be implemented in the headquarters as a pilot run first than in the subsidiary for improving organization issue in main company. This will help in reviving the company's current condition and business practice. A mentor program to ensure newly joined employees are ease at work and can adapt to the workplace environment. PMS system is based on ranking metrics to measure employee performance to encourage employee performance, by assigning KPI will help in role signing and career progression. A learning and development program other than for on the job training by the trainer will result in re-skilling (Sparrow, 2016) This will include virtual guided seasons and skill-based assessments for the employees. On a functional level effective compensation strategy by establishing and maintaining reasonable equity both home and abroad base will increase employee engagement and stickiness. The performance appraisal exchange allows for planning long term career progression (Hassan, 2016). Performance appraisal for expatriates will be designed as they play a critical role in global operations. A key consideration for expatriates includes time and distance consideration as the international adjustment period is less productive due to the foreign environment and culture (Nivlouei, 2014). Using a rater scale will help in evaluating performance on the unique conditions involved. Coaching will enable workforce performance management by one-on-one assistance mutual goal setting and encouraging employees. Using self-directed teams, virtually connect through video conferencing, and developing group communication through intranet will prevent miscommunication. A peer review and feedback process for employees will improve transparency and improving business performance. Mentor program on individual employee basis for directing, motivating, and guiding team personnel

Conclusion on The Search for Global Competence

No Name aircraft highlights the need for organizational development and aligning human resources. The organization lacked training, diversity, international human resource management, and cultural dimension. The role of the consultant in developing review policy structure decision making and aligning subsidiaries and holding company will encourage the revival of the company. Developing an employee training program, learning, and development abilities will boost employee growth development. Understanding cultural dimension highlights the difference between cultural practice and societal norms based on power distance that can bridge the difference between the subsidiaries and ensure communication between all parties. Performance Management System linked with rewards will result in employee motivation. The performance appraisal presents the opportunity for consideration and planning career progression. Performance appraisal for expatriates will be designed as they play a critical role in global operations. A key consideration for expatriates includes time and distance consideration as the international adjustment period iEffective performance management for No Name Aircraft linking individual employee’s priority and sensitivity to the cross-cultural condition will increase the optimal support of workers in a different assignment while working. Management assortment through improving communication and implementing policy for hiring and- discrimination conduct will cultivate such issues reported and identified in the organization so that they do not become repetitive. 

Reference for The Search for Global Competence

Cascio, WF, (2016). The search for global competence: From international HR to talent management. The Journal of World Business. 51(1), 103-114

OECD. (2011). OECD Guidelines for Multinational Enterprises. Retrieved from http://www.oecd.org/daf/inv/mne/48004323.pdf

Daniel, O.G. (2018). Effects of training on Organisational performance. Asian Journal of Business and Management, 6(5). 58-62.

Elnaga, A., and Imran, A.( 2013). The effect of training on employee performance. European Journal of Business and Management, 5(4), .137-147.

Elmah, DE. .(2018). The link between competitive strategy, organizational culture, and human resources management practices. European Journal of Business and Management,12(1), 56-78

Fenton-O'Creevy, M., Gooderham, P. & Nordhaug, O. Human resource management in US subsidiaries in Europe and Australia: centralization or autonomy?. J Int Bus Stud 39, 151–166 (2008). https://doi.org/10.1057/palgrave.jibs.8400313

Hassan, S. (2016). Impact of HRM practices on employee’s performance. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(1), 15-22.

Hofstede insights. (2020). Country comparison. Retrieved from https://www.hofstede-insights.com/country-comparison/australia/

Lauring, J. (2012). International diversity management: Global ideas and local responses. British Journal of Management, 3(1), 12-23DOI: https://doi.org/10.1111/j.1467-8551.2011.00798.x

Misra, S., Srivastava, BL. (2018). Team-building competencies, personal effectiveness, and job satisfaction: The mediating effect of transformational leadership and technology. Management and Labor Studies, 2(1), 54-67. DOI: https://doi.org/10.1177/0258042X17753178

Nivlouei, F.B., (2014). Electronic human resource management system: The main element incapacitating the globalization paradigm. International Journal of Business and Social Science, 5(2).

Nguyen, S. (2014).The critical role of research in diversity training: how research contributes to an evidence-based approach to diversity training, Development and Learning in Organizations, 28 (4), 15-17. https://doi.org/10.1108/DLO-01-2014-0002

Sparrow, P., Houldsworth, E., Brewster, C., Vernon, G. (2016). International Human Resource Management. United Kingdom: Kogan Page.

Vance, C., & Paik, Y. (2006). Managing a global workforce: challenges and opportunities in international human resource management. ME Sharpe

Zhang, Y., & Huai, Y.M, (2015). Diverse work groups and employee performance: The role of communication ties. Journal of Business Management, 3(1), 2-11.

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